Because of the weakening job market, the fifth-largest U.S. investment bank, Bear Stearns, will be bought by JPMorgan Chase for $240 million. Half of Bear Stearns's 14,000 jobs will be cut with the merger.

"Bear Stearns professionals have been sending out their resumes, and this flow will only increase as the week goes on," said CEO of Options Group Michael Karp. "The current market is not as bad as 1990-1991, but it's getting there."

The areas that will be hit hardest are mortgages, credit derivatives, and structured finance divisions. Regarding Bear Stearns's losses, "I think it will be difficult for a lot of the people who lose their jobs because of the state of the industry right now," said the president of Alliance Consulting, Paul Sorbera.

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